[Federal Register Volume 73, Number 97 (Monday, May 19, 2008)]
[Proposed Rules]
[Pages 28788-28790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11124]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[DOD-2008-DARS-0006; 0790-AI05]

48 CFR Part 5432


Transporter Proof of Delivery

AGENCY: Department of Defense.

ACTION: Proposed rule.

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SUMMARY: This rule proposes to provide an additional method for 
documenting customer receipt of DLA supplies and services in support of 
the contract acceptance and payment process by allowing contractor 
input of receipt documentation into the Department of Defense Wide Area 
Workflow system.

DATES: Consideration will be given to all comments received July 18, 
2008.

ADDRESSES: You may submit comments, identified by docket number and or 
Regulatory Information Number (RIN) number and title, by any of the 
following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Federal Docket Management System Office, 1160 
Defense Pentagon, Washington, DC 20301-1160.
    Instructions: All submissions received must include the agency name 
and docket number or RIN for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
Internet at http://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Charlene Baez, (703) 767-1316, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Executive Order 12866, ``Regulatory Planning and Review''

    It has been determined that 48 CFR part 5432 is not a significant 
regulatory action. The rule does not:
    (1) Have an annual effect to the economy of $100 million or more or 
adversely affect in a material way the economy; a section of the 
economy; productivity; competition; jobs; the environment; public 
health or safety; or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another Agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    It has been certified that this rule does not contain a Federal 
mandate that may result in the expenditure by State, local and tribal 
governments, in aggregate, or by the private sector, of $100 million or 
more in any one year.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    It has been certified that this rule is not subject to the 
Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.
    The implementation of this rule will facilitate the receipt 
documentation process and enhance the accountability of DLA-provided 
goods, as well as provide a basis for more efficient and expeditious 
payments to affected contractors. In this process, contractors input 
copies of signed delivery documents provided by the transporter of the 
supplies into the Wide Area Workflow system. Contractor use of the Wide 
Area Workflow (WAWF) system is being implemented throughout the 
Department of Defense for submission of invoices. Approximately 1 hour 
is needed to learn the new system. Use of the WAWF system does not 
require any additional reporting, recordkeeping, or compliance records 
from small entities. Therefore no additional capability or resource 
expenditure will be required and no significant impact is anticipated.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    It has been certified that this rule does impose reporting or 
recordkeeping requirements under the Paperwork Reduction Act of 1995.

[[Page 28789]]

Executive Order 13132, ``Federalism''

    It has been certified that this rule does not have federalism 
implications, as set forth in Executive Order 13132. This rule does not 
have substantial direct effects on:
    (1) The States;
    (2) The relationship between the National Government and the 
States; or
    (3) The distribution of power and responsibilities among the 
various levels of government.

List of Subjects in 48 CFR Part 5432

    Contract delivery receipt process.

    Accordingly, title 48 CFR Chapter 54, is proposed to be amended to 
add part 5432 to read as follows:

PART 5432--TRANSPORTER PROOF OF DELIVERY

Sec.
5432.1 Payment documentation process.
5432.2 Transporter proof of delivery.

    Authority: 41 U.S.C. 401 et seq.


Sec.  5432.1  Payment documentation process.

    (a) Transporter Proof of Delivery (TPD) is a commercial document 
generated by the contractor and/or the transporter of supplies and 
completed by the Government customer. The TPD process is used as a 
supplement to the customer receiving report and provides information 
necessary to show receipt of the supplies by the customer. The fully-
completed TPD process demonstrates receipt and, coupled with 
acceptance, allows the Government to pay the contractor. It is not a 
substitute for any other requested receipt and acceptance 
documentation, such as DD 250, ``Material Inspection and Receiving 
Report'', but is a supplement to such documentation.
    (b) The Defense Logistics Agency (DLA) may accept supplies based on 
satisfactory TPD.
    (c) The Contracting Officer may authorize the use of the TPD 
process when, based on historical receipt and payment metrics, Finance 
and Procurement Customer Liaisons (FCLs) recommend and the Contracting 
Officer determines the application of the TPD process necessary to 
ensure timely payment under the particular circumstances of a 
procurement. The recommendations made by the FCLs will be given on an 
individual basis based on analysis of the historical contract data, 
invoicing history, and customer receipting history. All of the 
following conditions must be present for using the TPD process:
    (1) It is a Business Systems Modernization (BSM)/Enterprise 
Business System (EBS) procurement.
    (2) Contract/order is awarded on a fixed price basis.
    (3) Contract/order is customer direct.
    (4) Fast pay is not authorized.
    (5) Procurement is not origin acceptance.
    (6) Procurement does not require overseas shipments or shipments to 
consolidation and containerization points.
    (7) A joint finance team and acquisition team decide when 
implementing the TPD process is necessary to ensure prompt payment 
processing.
    (d) Suppliers with existing contracts must agree to use the clause 
by the execution of a bilateral contract modification. If a vendor has 
an existing contract that has been modified to include the TPD process, 
that vendor's follow-on contract will normally include the TPD process.
    (e) When authorized in accordance with paragraph (b) of this 
section, the Contracting Officer will include the clause at Sec.  
5432.2 in the contract, order, solicitation, request for quotation 
(RFQ), or purchase order.


Sec.  5432.2  Transporter proof of delivery.

    As prescribed in paragraph (d) of this section, insert the 
following clause:
TRANSPORTER PROOF OF DELIVERY (AUG 2006)

    (a) As used in this clause, Transporter Proof of Delivery (TPD) 
are commercial documents generated by the contractor and/or the 
contractor's transporter of supplies, and completed by the 
Government customer in order to document delivery of supplies under 
this contract/order. The TPD must contain all information necessary 
to demonstrate customer receipt of specified supplies under a 
specific contract or order, including a customer signature 
demonstrating receipt of supplies. This documentation, when 
completed and submitted as prescribed herein, satisfies the receipt 
report requirement and, coupled with acceptance, allows the 
Government to issue payment if other applicable payment conditions 
are satisfied.
    (b) Submitted TPD. (1) The submitted TPD must include all of the 
following information:
    (i) Contract number/order number.
    (ii) Unit price.
    (iii) Extended price.
    (iv) Detailed description of supplies.
    (v) Delivery date.
    (vi) Recipient organization's name and address.
    (vii) Location of delivery.
    (viii) Receiving individual's printed name.
    (ix) Receiving individual's signature.
    (2) A combination of contractor and transporter documents may be 
needed to provide all of the required information. Examples are 
contractor packing lists and UPS or FEDEX delivery tracking reports. 
If a combination of documents is used, they must include cross-
reference information, such as shipment number, that demonstrates 
that both sets of documents refer to the same supplies.
    (c) Use of the transporter proof of delivery. (1) Payment. When 
this clause is used, the Government may use the TPD receipt as a 
basis for accepting the supplies, thereby enabling payment based on 
the contract/order, contractor's invoice, contractor-submitted TPD, 
and Government acceptance.
    (2) TPD Process. (i) The Contractor shall self-register at the 
Wide Area Workflow (WAWF) Web site: https://wawf.eb.mil. (See 
https://wawf.eb.mil for WAWF registration and http://www.wawftraining.com for detailed training instructions. Additional 
WAWF support can be accessed by calling DISA WESTHEM Customer 
Support at (866) 618-5988. For more information on WAWF please go to 
the DLA WAWF Site: http://www.dla.mil/j-3/wawf.).
    (ii) The Contractor shall enter the Receiving Report (RR) data. 
Contractors shall ensure the ``pack later'' box under the Pack Tab 
is checked prior to the submission of the RR.
    (iii) The Contractor's transporter presents TPD documents to the 
customer for receipt signature or the transporter otherwise secures 
a customer signature demonstrating receipt, such as through an 
electronic signature recording device.
    (iv) The Contractor obtains the TPD from the transporter, either 
in hardcopy provided by the transporter or through other means, such 
as a printout from the transporter's Internet tracking site.
    (v) When the Contractor receives the TPD documents from the 
transporter, he or she will return to WAWF using ``view documents,'' 
enter the appropriate contract data, and recall the RR.
    (vi) On the first page provided, the Contractor will uncheck the 
``pack later'' box.
    (vii) The Contractor shall then go to the last entry and click 
on ``attachment.'' This will allow the Contractor to attach the TPD 
documents. When the TPD document is attached, the Contractor shall 
return to the Header Tab and submit the TPD document(s).
    (viii) WAWF will notify the BSM FCL via email that a WAWF RR 
document is ready for review.
    (ix) The information provided in the chart below is provided to 
assist the Contractor in the creation of the RR in WAWF:

------------------------------------------------------------------------
              WAWF fields                         Data to enter
------------------------------------------------------------------------
WAWF Document Type.....................  Invoice and Receiving Report
                                          (COMBO).
Inspection/Destination Points..........  Other/Other.

[[Page 28790]]

 
Issue By Department of Defense Activity  DODAAC of activity that issued
 Address Code (DODAAC).                   the contract.
Admin DODAAC...........................  DODAAC of activity that
                                          administers the contract.
Inspect By DODAAC (if applicable)......  N/A--leave blank.
Ship To Code...........................  DODAAC of the Ship To activity.
Acceptor at Other DODAAC...............  Refer to Issue By DODAAC:
                                            If Issue By is SPM1, use
                                             SP1001.
                                            If Issue By is SPM4, use
                                             SP4001.
                                            If Issue By is SPM5, use
                                             SP5001.
                                            If Issue By is SPM7, use
                                             SP7001.
PAY DODAAC.............................  DODAAC of the activity that
                                          pays the contract.
Attachment.............................  Attach customer delivery
                                          documentation.\1\ (Attachments
                                          created in any Microsoft
                                          Office Product or in PDF
                                          format are acceptable.)
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\1\ Contractors are required to attach TPD complying with subparagraphs
  (a) and (b) of this clause to their WAWF document. To add attachments,
  enter contract information and then click on `Create Document.' Then
  click on the `Misc Info' tab. Attachment specific buttons will appear
  on the right side of the page. Select document to attach and click
  `Open.' Then click `Continue.' Your attachment will appear in the
  dropdown box. Click on the `Header' tab to return to your original
  document and click `Submit.'

    (d) Responsibility for supplies. (1) Title to the supplies 
passes to the Government after delivery to the point of first 
receipt by the Government and subsequent acceptance.
    (2) Notwithstanding any other provision of the contract, order, 
or blanket purchase agreement, the Contractor shall:
    (i) Assume all responsibility and risk of loss for supplies not 
received at destination, damaged in transit, or not conforming to 
purchase requirements; and
    (ii) Replace, repair, or correct those supplies promptly at the 
Contractor's expense, if instructed to do so by the Contracting 
Officer within 180 days from the date title to the supplies vests in 
the Government.

End of Clause

    Dated: May 7, 2008.
Patricia L. Toppings,
OSD Federal Register Liaison Officer. Department of Defense.
 [FR Doc. E8-11124 Filed 5-16-08; 8:45 am]
BILLING CODE 5001-06-P